PIKEVILLE, KY - An independent audit has been ordered for Kentucky Power by the Kentucky Public Service Commission (PSC), launching a broad review of the utility's management practices and operations.
The decision could be of particular interest to residents across Eastern Kentucky, including customers in portions of Rowan County, where Kentucky Power provides electric service. Overall, the company serves approximately 162,000 customers across 20 counties in eastern Kentucky.
According to state regulators, the audit follows concerns over the company's long-term planning and financial decisions involving a coal-fired power plant in West Virginia.
The PSC said Kentucky Power continued seeking approval for investments in the aging generating station, which is more than five decades old. Although regulators ultimately approved those investments in 2021, they have since expressed concerns about how the company handled the process.
PSC Chair Angie Hatton said the commission believes Kentucky Power placed regulators in a difficult position by delaying key decisions, leaving the agency to choose between allowing continued investment in the plant or exposing customers to fluctuations in the wholesale electricity market.
The review also follows concerns raised by the Kentucky Attorney General's Office during proceedings involving Kentucky Power's request for a base rate increase. Those concerns centered on whether the utility has been operating and managing its electric system in a manner that best serves customers.
As part of the ongoing case, the Attorney General's Office has formally intervened, allowing its staff to participate in the proceedings and question company officials on behalf of Kentucky consumers.
The Public Service Commission has stated that the purpose of the independent audit is to evaluate Kentucky Power's management practices and determine whether operational improvements are needed. Regulators have indicated they intend to release the audit's findings publicly once the review is complete.
For many Eastern Kentucky residents, including Kentucky Power customers in Rowan County, the outcome of the audit could influence future decisions involving electric rates, infrastructure investments, and the utility's long-term planning.
The Morehead Minute will continue monitoring the PSC proceedings and report on any developments that could affect local customers.